Tata Power Co. Ltd.
Power · NSE
52-week range
₹343 – ₹465
From 52w high
-6.2%
RSI (14)
57.2
vs SMA 50 / 200
↑ 50 · ↑ 200
Tata Power (₹434) is a diversified Indian power utility spanning thermal, solar, wind, and distribution, trading at a PE of 36.6 against a forward PE of 26.7, above larger-cap peers NTPC (PE 22.3) and POWERGRID (PE 20.2). Over the past 5 years, revenue contracted 9.4% and earnings contracted 25.2%, while the debt-to-equity ratio stands at 156.16 with a rising trend and zero FCF-positive years on record. The stock has risen 15.7% over 12 months and 19.1% over the past 3 months, with both 50-DMA and 200-DMA below current price and RSI at 55.4 (neutral zone).
- ✓Recent price momentum is notable: +15.7% over 12 months and +19.1% over 3 months, with the stock trading above its 50-DMA (₹406.73) and 200-DMA (₹389.98), and only 6.65% below the 52-week high.
- ✓Tata Power has an active renewable energy pipeline including a 404 MW Bhutan hydro partnership announced in May 2026, reflecting continued capacity expansion into clean energy.
- ✓Forward PE of 26.7 represents a meaningful compression from the trailing PE of 36.6, implying consensus earnings recovery expectations embedded in current analyst projections.
- ✓Analyst mean rating of 2.42 across 24 analysts (1–5 scale, lower = more constructive) indicates coverage is distributed toward the constructive end of the scale.
- ✗D/E of 156.16 with a rising debt trend and zero FCF-positive years reflects the most leveraged and cash-generative-deficient profile in the peer group, creating refinancing and interest-coverage vulnerability.
- ✗5-year earnings contraction of 25.2% and revenue contraction of 9.4% indicate that growth has not materialized over the measurement window despite significant capital deployment.
- ✗Quality score of 9 out of 100 ranks TATAPOWER last among the 6-company peer group (peer range: 23–52 for ADANIPOWER through POWERGRID), with consistency score of 35 and zero years of ROE above 15%.
- ✗Profit margin of 5.87% is thin for a capital-intensive sector; at current leverage levels, any revenue softness or interest-rate increase directly compresses the narrow margin available to equity.
- ·Tata Power is scheduled to report Q4FY26 results with an analyst call on May 12, 2026 — Q4 earnings and management commentary on debt trajectory and renewable project economics will be a near-term data point.
- ·The stock reached fresh highs alongside Adani Power in late April 2026 on heatwave-driven demand expectations, a seasonal and weather-dependent catalyst rather than a structural earnings driver.
- ·The 404 MW Bhutan hydro partnership (announced May 8, 2026) and ongoing solar EPC order flow represent capacity additions that are capital-intensive and long-dated in their earnings contribution, consistent with the company's strategy of growing the renewable portfolio.
- ?How has Tata Power's interest coverage ratio trended over the past 3 years, and at what debt-to-equity level does management consider the balance sheet adequately de-risked for its renewable growth ambitions?
- ?Does the forward PE compression from 36.6 to 26.7 reflect genuine consensus earnings recovery, and what proportion of that recovery is attributed to the renewable segment versus legacy thermal operations?
- ?Given that FCF has been negative across the reported period and debt is rising, what is the primary source of funding for new capacity additions — equity dilution, project-level debt, or government grants — and how does each affect equity value?
- ?How does TATAPOWER's quality score of 9 compare to its own history (not just current peers), and has the company shown any multi-year period where capital returns were consistently above its cost of capital?
PE
36.6
Forward PE
26.7
ROE
—
Profit margin
+5.9%
D/E
156.16
Dividend yield
+0.5%
Quality score
9/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
0/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.